The word “organization” may be used to refer to the process of organizing, the structure that evolves out pf this process and the processes/activities that take place within it.

All activities involving two or more persons entail the formation of an organization. Organizations could be simple or complex depending upon their purposes, size, technology or nature of activities. They can have both macro and micro aspects. If a factory is considered ‘macro’ unit of an organization, each section of the shop floor or each functions or even a dyad comprising a worker and his/her supervisor can be considered as the ‘micro’ unit ( or a component part) or a sub-system in the larger organizations. Each part/unit can have its own objectives or other characteristics.

The basic elements of organizations have remained the same over the years. Organizations have purpose (be they explicit or implicit), attract people, acquire and use resources to achieve the objectives, use some form of structure to divide (division of labour) and coordinate activities, and rely on certain positions/people to lead or manage others. While the elements of organizations are the same as ever before, the purpose of organization, structure ways of doing things, methods of coordination and control have always varied widely over the years and even at the same time amongst different organizations.